I was on the conference call this morning with business analysts and other journalists, as the satellite executives explained their announcement.
“We believe this is the next logical step for satellite radio,” said Mel Karmazin, now Sirius CEO, in the call aimed at the financial community. Karmazin, the long-time radio executive, would be CEO of the combined company if this deal, valued at $13 billion by the companies, is approved.
Combined, the satcasters “will create unprecedented choice for consumers” and shareholder value. He said Wall Street estimates $3 billion to $7 billion in total savings through a combination of savings on fixed components such as operating expenses.
“A greater portion of our revenue will be realized as cash flow,” said Karmazin. “We will deliver more cash flow and deliver it faster than we would as standalone companies.”